8th Cir. Confirms Various Loss Mit and Foreclosure Communications Not Subject to FDCPA

The U.S. Court of Appeals for the Eighth Circuit recently affirmed the entry of summary judgment in favor of a mortgage servicer against a borrower’s claims that it violated the federal Fair Debt Collection Practices Act (FDCPA).

In so ruing, the Eighth Circuit concluded that the communications at issue regarding denial of the borrower’s loss mitigation application were not made in connection with an attempt to collect on the underlying mortgage debt, and thus not actionable under the FDCPA, 15 U.S.C. 1692, et seq., and that the inclusion of boilerplate “Mini-Miranda” language stating that the communications were “for the purpose of collecting a debt” did not automatically trigger the protections of the FDCPA.

A copy of the opinion in Heinz v. Carrington Mortgage Services, LLC is available at:  Link to Opinion.